WYNN’s Mixed Bag
Close Off Puts
Dear Bottarelli Research Member,
Good morning. After the close of yesterday’s trading, Wynn Resorts (WYNN – NASDAQ) reported a loss of $5.2 million ($0.04 a share) compared with a loss of $159.6 million ($1.49 a share) one year ago. Excluding one-time costs, Wynn actually earned $0.08 per share, which missed analysts’ forecast of $0.13. But at the same time, WYNN’s revenues shot up 32% to $809.3 million versus $614.3 million last year. All told, this offers investors a mixed-bag, which is why WYNN isn’t moving whatsoever this morning.
If you’re still holding the WYNN March 60 Puts (O:WYNN 10O60.00), which we entered yesterday for $2.20, go ahead and close off the position. With no earnings-based movement, the market makers will quickly leak premium out of both the calls and the puts. Therefore, it’s time to close the trade and move on. Sell.
In other news, the markets are opening the session flat which doesn’t offer any indication of future directional movement. Therefore, maintain all of your positions so that we’re prepared for anything.
As always, I’ll follow up throughout the trading session. But until then…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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